Insiders Like Outfront Media Inc. (OUT) — Should You?

The exact reason why investors have been taking up Outfront Media Inc. (NYSE:OUT) stock at a frenetic pace might seem like a bit of a head-scratcher at the moment, but that’s only if you are buying the stock for the wrong reasons. On 14 March, the shares accumulated 0.22 points or 1 percent at $22.32 with a heavy trade volume of 2.065 million shares. After opening the session at $22.12, the shares went as high as $22.36 and as low as $22.03, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $3.19 billion and now has 143.07 million shares outstanding. Outfront Media Inc. (OUT) stock has gained 7 percent of market value in 21 trading days.

OUT stock has a trailing 3-year beta of 1.31, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was $0.77 a share in the trailing twelve months. The stock’s value has surged 23.18 percent year to date (YTD) against a rise of 15.41 percent in 12 month’s time. The company’s shares still trade -2.87 percent away from its 1-year high of $22.98 and 32.78 percent up from 52-week low of $16.81. The average consensus rating on the company is 2.5, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.

Outfront Media Inc. (OUT) will probably climb 11.38 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $27-month high price target. This represents a whopping 20.97 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $24, which represents a return potential of 7.53 percent when compared to the closing price of the stock of $22.32 on Thursday, March 14. The lowest price target for the stock is $22 — slightly more than -1.43 percent from OUT’s current share price.

History has shown that shares in Outfront Media Inc. have gone down on 10 different earnings reaction days and are predicted to add 0.04 percent when the company reports upcoming earnings.

The stock is currently hovering around the first support level of $22.11. Below this, the next support is placed in the zone of $21.91. Till the time, the OUT stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 60.26 on daily chart, which may remain a cause for concern. If the price breaks below $21.91 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $22.44 mark may result into a pull-back move towards $22.57 level.

Shares of Outfront Media Inc. (OUT) are trading at a P/E ratio of 28.82 times earnings reported for the past 12 months. The industry OUT operates in has an average P/E of 45.61. Its P/E ratio went as low as 10.02X and as high as 37.87 over the 5-year span.Further, it is sporting a 1.99 on the Price-to-Sales ratio. Compare this with the industry average P/S of 9.17. 46.5 percent is the gross profit margin for Outfront Media Inc. and operating margin sits at 14.6 percent. Along with this, the net profit margin is 6.7 percent.